We all have heard the term “long term investment in the stock market” very often. It is usually considered a great way to invest in the stock market, providing better returns overall and offsetting the risks associated with the short term market volatility as well. But what exactly constitutes a “long term” investment in the stock market? On many occasions, business cycles tend to last for about seven years. Investing for a time period of five-seven years qualifies as medium-term investing while any investment done in the share market for longer than seven years qualifies as long term investment. In this post, we will take a look at the best available stocks to buy in India for long term investment. Let’s get started.
25 Best stocks to Buy in India for Long Term
1. Metropolis Healthcare Limited
Kicking off our list of the best stocks to buy in India for long term, is Metropolis Healthcare Limited. The firm is in Hospital & Healthcare Services. Pathnet India Private Limited was incorporated at New Delhi as a private limited company under the Companies Act, 1956 pursuant to the ‘Certificate of Incorporation’ granted by the Registrar of Companies, N. C. T. of Delhi and Haryana on November 10, 2000. The name of The Company was changed to Pathnet India Limited pursuant to a ‘Fresh Certificate of Incorporation Consequent upon Change of Name on Conversion to Public Limited Company’ granted by RoC on July 1, 2009. The name of The Company was changed to Metropolis Healthcare Limited pursuant to a ‘Fresh Certificate of Incorporation Consequent upon Change of Name’ granted by RoC on September 23, 2009.
2. Fine Organic Industries Limited
Next on our list of the best stocks to buy in India for long term, is Fine Organic Industries Ltd. It was incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 8477.64 Crore) operating in the Chemicals sector.
Fine Organic Industries Ltd. key Products/Revenue Segments include Speciality Chemicals which contributed Rs 1033.68 Crore to Sales Value (99.01 % of Total Sales), Others which contributed Rs 10.29 Crore to Sales Value (0.98 % of Total Sales) and Scrap which contributed Rs .00 Crore to Sales Value (0.00 % of Total Sales )for the year ending 31-Mar-2019.
For the quarter ended 30-06-2020, the company has reported a Consolidated sales of Rs 240.01 Crore, down -2.94 % from last quarter Sales of Rs 247.28 Crore and down -4.22 % from last year same quarter Sales of Rs 250.59 Crore Company has reported net profit after tax of Rs 29.16 Crore in the latest quarter.
3. TCNS Clothing Co. Limited
Next on our list of the best stocks to buy in India for long term is TCNS Clothing Co. Limited. It is India’s leading women’s branded apparel company in terms of total number of exclusive brand outlets as of May 2018, according to Technopak. The Company designs, manufactures, markets and retails a wide portfolio of women’s branded apparel across multiple brands. The Company sells its products across India and through multiple distribution channels. As of March 31, 2019, the company sold its products through 541 exclusive brand outlets, 1,469 large format store outlets and 1,522 multi-brand outlets, located in 31 states and union territories in India.
The company’s product portfolio includes top-wear, bottom-wear, drapes, combination-sets and accessories that cater to a wide variety of the wardrobe requirements of the Indian woman, including every-day wear, casual wear, work wear, and occasion wear.
4. Jubilant FoodWorks Limited
Next on our list of the best stocks to buy in India for long term is Jubilant Foodworks Ltd. It was incorporated in the year 1995. It is a Large Cap company (having a market cap of Rs 28610.23 Crore) operating in Tourism & Hospitality sector.
Jubilant Foodworks Ltd. key Products/Revenue Segments include Pizza which contributed Rs 2736.77 Crore to Sales Value (77.51 % of Total Sales), Others which contributed Rs 534.60 Crore to Sales Value (15.14 % of Total Sales), Beverages which contributed Rs 136.44 Crore to Sales Value (3.86 % of Total Sales), Desserts which contributed Rs 64.98 Crore to Sales Value (1.84 % of Total Sales), Dips which contributed Rs 34.68 Crore to Sales Value (0.98 % of Total Sales), Others (Traded) which contributed Rs 17.33 Crore to Sales Value (0.49 % of Total Sales) and Other Operating Revenue which contributed Rs 5.88 Crore to Sales Value (0.16 % of Total Sales)for the year ending 31-Mar-2019.
5. Kennametal India Limited
Next on our list of the best stocks to buy in India for long term, is Kennametal Widia India Ltd.(formerly Widia India Ltd). The firm is promoted by Meturit, Switzerland, associates of the Fried Krupp Widia Fabrik unit of Krupp Group, Germany, and Sak Industries, Switzerland. The company’s collaborator Meturit, Switzerland, holds 88.16% stake.
The company incorporated in 1964 manufactures hard metal products, mining tools, special-purpose machines, metal castings, formings, jigs and fixtures. It exports its products to Japan, Germany and the south-east Asian countries. The company received the ISO 9001 certification in 1992. In 1994, the company was taken over by Cincinnati Milacron, US.
The company’s wholly owned subsidiary Widaroc (India) was merged with the company with effect from Jan’95. It has also introduced several new state of the art products. Some of them are, new generation milling cutters, new special solid carbide tools, new generation coated inserts, warming forging tools for bearing industry, cold forgings dies for big auto components, etc.
6. COFORGE Limited
Next on our list of the best stocks to buy in India for long term, is NIIT Technologies Limited. It is an information technology (IT) solutions organization engaged in application development and maintenance, managed services, cloud computing and business process outsourcing to organizations in the financial services, insurance, travel, transportation and logistics, manufacturing and distribution and government sectors. The Company delivers services across continents directly and through its network of subsidiaries. It is servicing customers in North & South America, Europe, the Middle East, Asia and Australia. The Company’s service offerings include application development and management, package implementation, managed services, platform based services, business process outsourcing and cloud computing. The Company’s subsidiaries include NIIT GIS Ltd, India, NIIT SmartServe Ltd, India, NIIT Technologies Services Limited, India and NIIT Technologies GmbH, Germany. In August 2011, the Company acquired Proyecta Sistemas de Informacion S.A.
7. TCI Express Limited
TCI XPS was established in 1996 as one of the foremost divisions of Transport Corporation of India (TCI), India’s most admired logistics company. It is also one of the best stocks to buy in India for the long term.
Today TCI XPS has been hived off to become TCI EXPRESS LIMITED, an independent company listed with stock exchanges of India. Here the focus is very clearly on express cargo distribution with greater emphasis on the burgeoning e-commerce business. We specialize in offering time definite solutions. We are the only express cargo company in India having our own set up across India reinforced with a team of over 2500 professionals and more than 40000 delivery points.
8. Page Industries Limited
Next on our list of the best stocks to buy in India for long term is Page Industries Ltd. It is located in Bangalore, India. The firm is the exclusive licensee of JOCKEY International Inc. (USA) for manufacture and distribution of the JOCKEY brand Innerwear/Leisurewear for Men and Women in India, Sri Lanka, Bangladesh, Nepal and UAE. Page Industries is also the exclusive licensee of Speedo International Ltd. for the manufacture, marketing and distribution of the Speedo brand in India. The company was set up in 1994 with the key objective of bringing the world renowned brand \”JOCKEY\” to India. Its promoters, Genomal family, who have been associated with JOCKEY International Inc. for 50 years as their sole licensee in the Philippines. Page Industries became a public company in March 2007 and is quoted in the Bombay Stock Exchange and the National Stock Exchange of India
9. Tasty Bite Eatables Limited
Tasty Bite Eatables Ltd is in the business of manufacturing and marketing ready-to-serve food and frozen vegetables. It’s easily one of best stocks to Buy in India for long term. The company sells their products under the brand name Tasty Bite. Tasty Bites has exceptional retort pouches developed for the Apollo space programme. Tested to withstand extreme temperatures and heights from well below sea level to as high as the moon, this retort packaging has made Tasty Bites favourite with campers, mountain climbers, sailing expeditions and desert safaris.
10. Goodyear India Limited
Next on our list of the best stocks to buy in India for long term is Goodyear India Limited. This famous brand is engaged in the manufacturing and trading of tires, tubes and flaps. The Company supplies tires to a range of original equipment manufacturers (OEMs). The Company manufactures automotive bias tires, such as farm tires and commercial truck tires at its Ballabgarh plant. The Company also trades in Goodyear branded tires, including radial passenger tires (consumer) and off the road (OTR) bias tires, manufactured by Goodyear South Asia Tires Private Limited (GSATPL), Aurangabad. The other products, which the Company markets and sells, include radial OTR imported tires. The Company offers products under the brands, such as Assurance TripleMax, Assurance Duraplus and Wrangler AT/SA. The Company also offers tubeless radial tires. It offers Goodyear tires to the tractor companies. The Company also offers Goodyear Eagle EfficientGrip, Goodyear Eagle F1 Directional 5 and Goodyear Excellence, among others.
11. Adani Green Energy Limited
Adani Green Energy Limited (AGEL) is an Indian renewable energy company headquartered in Ahmedabad, Gujarat. It is owned by Indian conglomerate Adani Group. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world.
The company was incorporated on January 23, 2015, as Adani Green Energy Limited under the Companies Act 2013.
During the initial days of existence, AGEL and Inox Wind together established a 20 MW capacity wind power project in Lahori, Madhya Pradesh. Also, AGEL bought Inox Wind’s 50 MW wind power project at Dayapar village in Kutch. The project was conceived by the latter when it won a Solar Energy Corporation of India’s capacity bids for wind power projects connected to the National Grid.
In 2015-2016, Adani Renewable Energy Park Limited, a subsidiary of AGEL, signed a joint venture agreement with the Government of Rajasthan.
In 2017, the company took the complete control of overall solar energy portfolio of Adani Enterprises and got itself listed at National Stock Exchange of India and Bombay Stock Exchange. It is definitely one of the best stocks to buy in India for long term.
12. Garden Reach Shipbuilders & Engineers Limited
Garden Reach Shipbuilders & Engineers Ltd, abbreviated as GRSE, is one of India’s leading shipyards, located in Kolkata, West Bengal. It builds and repairs commercial and naval vessels. Presently GRSE has also started building export ships in a mission to expand its business.
Founded in 1884 as a small privately owned company on the eastern bank of the Hooghly River, it was renamed as Garden Reach Workshop in 1916. The company was nationalised by the Government of India in 1960. It has grown to become one of the best stocks to by in India for long term. It was awarded the Miniratna status, with accompanying financial and operational autonomy in September 2006. It is the first Indian shipyard to build 100 warships
13. Sundram Fasteners Limited
Next on our list of the best stocks to buy in India for long term is Sundaram Fasteners Limited. With a diversified product line, world-class facilities in four countries and a motivated team of talented people, Sundram Fasteners Ltd has become a supplier of choice to leading customers in the automotive and industrial segments worldwide. The product range of the company includes Fasteners, Radiator Caps, Powder Metal Parts, Cold Extruded Parts, Hot Forged Parts and Pumps & Assemblies.
14. Lux Industries Limited
Lux Industries Limited is a Public incorporated on 21 July 1995 and it’s next on our list of the best stocks to buy in India for long term. It is classified as a Non-govt company and is registered at Registrar of Companies, Kolkata. Its authorized share capital is Rs. 650,000,000 and its paid up capital is Rs. 50,506,000. It is involved in the manufacture of knitted and crocheted fabrics and articles
Lux Industries Limited’s Annual General Meeting (AGM) was last held on 05 September 2019 and as per records from the Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2019.
15. Star Cement Limited
Next on our list of the best stocks to buy in India for long term is Star Cement Limited. It is a Public incorporated on 02 November 2001. It is classified as a Non-govt company and is registered at Registrar of Companies, Shillong. Its authorized share capital is Rs. 830,000,000 and its paid up capital is Rs. 419,228,992. It is involved in the manufacture of non-metallic mineral products n.e.c.
Star Cement Limited’s Annual General Meeting (AGM) was last held on 27 September 2019 and as per records from the Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2019.
16. GMR Infrastructure Limited
GMR Infrastructure Ltd is the infrastructure holding company formed to fund the capital requirements of various infrastructure projects in the Groups Energy, Highways and Airport and SEZ sectors. It is always present on almost every list of the best stocks to buy in India for long term. It undertakes the development of infrastructure projects through its various subsidiaries. The company is engaged in restructuring and modernization of airports. They are also involved in the development of power plants and highways as well as engaged in the production of sugar; and development of a multi product special economic zone in Krishnagiri district in Tamil Nadu. The company is also involved in the business activities of EPC.
17. Whirlpool of India Limited
Whirlpool, right from its inception in 1911 as the first commercial manufacturer of motorized washers to the current market position of being world’s number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. As a result of that, it is one of the best stocks to buy in India for long term. The parent company is headquartered at Benton Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing operations in 13 countries with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis. Today, Whirlpool is the most recognized brand in home appliances in India and holds a market share of over 25%.
18. Alembic Pharmaceuticals Limited
Next on our list of the best stocks to buy in India for long term is Alembic Pharmaceuticals Limited. It is a leading pharmaceutical company in India. The Company is vertically integrated with the ability to develop, manufacture and market pharmaceutical products, pharmaceutical substances and Intermediates. Alembic is the market leader in the Macrolides segment of anti-infective drugs in India. It was established in 1907. Alembic`s manufacturing facilities are located in Vadodara and Baddi in Himachal Pradesh.
19. IFB Industries Limited
Next on our list of the best stocks to buy in India for long term is IFB Industries Ltd. It is the premier Fine Blanker in India. The product range includes fine blanked components, tools and related machine tools like straighteners, decoilers, strip loaders and others. The company has also diversified recently into the manufacture of microwave oven & fully automatic washing machines. The company has excellent facilities for tool design and tool making enabling it to meet up the expectations of all the automobile manufacturers in the country as well as some overseas customers, by supplying high quality fine blanking components on schedule. The company’s customers include Maruti Udyog, Ford India, Fiat India, Toyota Kirloskar Motors, Lucas TVS, Brakes India, Autoliv India, Rane TRW, IFB Automotive. The company also engaged in the business of engineering and home appliances.
20. The Supreme Industries Limited
Supreme Industries Ltd is engaged in the manufacture of products like Cross-Laminated Films, HMHD Films, Multilayer Films, SWR Piping Systems, PP Mats, moulded furniture, and many more. The company owns the largest plastics processors in India. It is also one of the best stocks to buy in India for long term investment. The product range of the company includes Moulded Furniture, Material Handling Products, XF Films and Hi-Performance Packaging Films- This product is extensively used by food industry for packaging products. The company also manufactures industrial moulded products, protective packaging and plastic piping systems. The company is also engaged in the business of Construction, Plastics Products.
21. PVR Limited
Next on our list of the best stocks to buy in India for long term is PVR Ltd. This famous brand, synonymous with multiplexes in India is engaged in the business of film exhibition. The company operates other businesses such as providing content, film distribution and entertainment park through its subsidiaries. They also conduct CSR programmes through PVR Nest that is engaged in the upliftment of street children through various initiatives.
22. Crompton Greaves Consumer Electricals Limited
Next on our list of the best stocks to buy in India for long term is Crompton Greaves. It is one of the leading consumer companies in India with a 75+ years old brand legacy. As of February 2016, it’s are an independent company under professional management and has 2 business segments – Lighting and Electrical Consumer Durables. It markets its products under the “Crompton” brand name in India and select export markets.
23. Hatsun Agro Product Limited
Next on our list of the best stocks to buy in India for long term is Hatsun Agro Products Ltd. It is the largest private sector dairy company in India. The company has its own infrastructure for milk collection centre and chilling centre for procuring and handling of raw milk. It’s the only company in India that uses Bactofuge Technology (from West Falia-Germany) to clarify liquid milk. The product range of the company includes Ice cream – Arun Icecream, Make Your Own Sunday, Arun Unlimited. Milk Products – Hatsun Cooking Butter, Hatsun Cow Ghee, Hatsun Butter Milk, Hutsun Curd, Hutsun Panner.Beverages – Aaros Milk/ Badam Milk, Aaros Tea/ Masala Tea, Aaros Coffee Aaros Ragi & Diary Ingredients.
24. Aavas Financiers Limited
Aavas Financiers Limited (Formerly known as Au Housing Finance Limited) was incorporated as a private limited company at Jaipur, Rajasthan, under the name of “Au Housing Finance Private Limited” under the Companies Act, 1956 on February 23, 2011. It formally started its operations in March 2012. It is definitely one of the best stocks to buy in India for long term
25. Britannia Industries Limited
Concluding our list of the best stocks to buy in India for long term is Britannia Industries Limited (BIL). It is one of India’s leading food companies. Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and Yoghurt. Its brand portfolio includes Tiger, Marie Gold, Good Day, 50:50, Treat, NutriChoice and Milk Bikis. BIL has a presence in more than 60 countries across the globe. BIL’s international footprint includes a presence in the Middle East through local manufacturing in UAE and Oman. The company is also the market leader in Nepal.
How to Choose Stocks for Long Term Investment in India?
Here are the seven crucial things that you should keep in mind while choosing stocks for long term investment in India:
- Do not accept “Hot Tips” as a valid piece of information. Do your own analysis before investing in any stock.
- Sell the stocks which are causing perpetual losses. It’s ok to admit that you made a mistake and move on from it. Don’t stick to a particular stock, hoping for it to give you massive returns one day.
- Don’t sweat much for little money. Active traders utilize minute-to-minute fluctuations to secure gains. But long-term investors succeed based on timeframes enduring years or more.
- Donʹt overemphasize the P/E ratio. It is a tool that works best when combined with other tools. A low P/E ratio doesnʹt really mean security is underestimated, nor completes a high P/E ratio essentially mean a company is overvalued. So don’t just depend on it for your long term investment decisions.
- Don’t go crazy over penny stocks. As you might’ve seen in Wolf of Wall Street, the only people who usually get rich off penny stocks are the people who sell them to you. On the surface, penny stocks promise strong returns on minimal investment, but the risk outweighs the gains by a wide margin.
- Don’t shuffle your strategy too much. Be a little patient and give your investment strategy some time to come to fruition. Jumping from one strategy to another very quickly might hurt you in the long run.
- Keep the future in mind. While past data might be a useful tool, you should always see where the stock is going as well.
What are the benefits of buying stocks for long term investment in India?
- Investing in stocks is a lot easier now. Gone are the days when you had to manually contact a broker and purchase physical shares. Now you can just sign up with an e broker and trade away using your computer or mobile phones.
- You’ll save income tax. Securities have a tax rate cap and depending on your income tax slab, you can save a lot of money.
- Long term investment is far safer than short term investment in the stock market. Over a long period of time, most markets have performed well and you can make money if you stick with your stocks for the long term.
- Since you are invested for a long period of time, you won’t have to lose your night’s sleep over short term market volatility. It will also prevent you from making rash decisions based on short term changes.
- Every time you trade in the stock market, you have to pay a certain amount as brokerage/commission. If you invest for the long term, the amount of brokerage that you will pay will be a very small percentage of your earnings.
- Long term investment also gives you more time to select different stocks to diversify your portfolio for better returns and security.
- The dividends declared by companies will keep on multiplying every year.
- Your income will keep increasing as a result of compounding.
